There are many examples where a payday loan has saved the day. It has been known to help some people get out of a really bad place.
When the whole process is fully understood and carried out properly by both parties - the lender and the borrower - then it can work well.
At times, it can even have the appearance of the answer to a prayer.
But oh dear! The real world is showing us that the whole thing breaks down far too often.
When this happens, for whatever reason, the results can all too often mean disaster and real hardship.
In some cases, all it needs is something unusual to happen and it becomes impossible to repay the loan by the due date.
This in itself might not be a major problem straight away, as a further loan is often easy to obtain, so the solution is merely put back by a couple of weeks or so.
Along with the new loan, there are usually penalties relating to being unable to repay, as well as some hefty new charges. These tend to be accepted without question, as there appears to be little or no choice
What really makes things a whole lot worse is when the change in situation - illness, reduction in income, loss of job etc., turns out to be more longer term than was at first expected.
Once more it can very often be simple to raise another loan, often a lot bigger than the original one. This is because you now have a record with your lender and he has your bank details.
Even if your original lender will not make further loans, now that you know the system, you can usually get to borrow money from another payday lender. This in no way solves the problem, but only helps to postpone the day of reckoning for another few weeks.
Such a thing would not be possible, if all the lenders were more careful and made all the sensible inquiries and checks, before lending. It has been discovered that many of the lenders and financial institutions involved pay only lip-service to the rules and make almost no checks, beyond making sure the borrower has a bank account.
This is one of the major reasons why so many people are tempted beyond breaking point. These are the ones who end up with severe debt problems.
These will sometimes take many years to resolve - if a solution is indeed possible.
The number of people contacting debt advice services, with exactly this type of situation, is increasing by leaps and bounds.
Indeed the increase shows no sign whatever of slowing down, so these type of problems appear to be with us for some time yet. It is a great shame that the advertising of this type of loan is so much more effective than is educating people about how to use credit and debt sensibly.
So, while the idea of a payday loan can certainly be the solution to some types of problem, it should only be considered very much as a last resort.
Having used it once, on no account should further loans be used to repay what should have been the final answer.
With the right information and knowledge about credit and debt, we hope to help people avoid the problems described.
However, if the spiral has already started, it is vital to get some advice immediately and learn what steps to take to stop and eventually reverse the downward trend.
I wonder why our education systems seem to completely ignore the subject of money.
In some ways it is one of the most important topics we should all be learning about.
Education about credit and debt is more important than ever nowadays. That is why we have published the 'Simple Money Guide' series of books, which are available through the website www.icashloans.com
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